The Food Cart Business

I remember when I was young, my mother buying from a certain Aling Gare whose cart was a rolling store of meat, fish, vegetables and other stuff that a housewife would buy in the market. I knew that she was making a lot of money, since she got the meat wholesale from some butchers who ply their trade illegally. Besides, she was selling on credit. Wives who were hard up with money just can't refuse the unlimited credit line, payable at the end of the month. But of course, there is the favorite "sa malamig", bananacue, fish ball, squid ball and other foodstuff peddled near schools, churches, hospitals, parks and markets. According to Josm Rosuello,the President of the Food Cart Association of the Philippines, the food cart business is easily the top choice of people who want to make money fast for the following reasons: 1. Easy to set up 2. Low Capital Requirement 3. Cash transactions 4. Portable 5. Fast recovery of investment 1. Easy to set up The business does not require as much as like a restaurant or a fastfood that require spaces for dining room, office, kitchen or storage which start up costs include the renovation, furniture and equipment and some months advance lease payments and deposits.All the aspiring entrepreneur have to do is to contact businesses that manufacture the cart and the raw food suppliers. 2. Low capital requirement The capital requirement depends on the kind of cart and intended location for the food cart business. The low is about 40,000 and the high can be a guestimate of 250,000. The cart can be assembled at a minimum cost of 10,000; cooking equipment and other accesories at 10,000 and food inventory and non-perishables may eat up the remaining balance of 40,000. The projected cost can be lower depending on how much is the projected sales and the intended inventory level of the food and non-food supplies. 3.Cash transactions Customers pay cash so that money would not be tied up with receivables. The working capital in the succeeding business days will be provided by the cash inflow from business. As to supply of food materials, after a credit line has been established, suppliers can provide the raw products payable with different terms. 4. Unlike the businesses which have fixed sites, the food cart business can be moved from one place to another where there are more prospective customers. 5. Fast recovery of investment With the projected sales of 3,000 pesos a day and assuming that profit margin is 25 per cent (low estimate, normally food can be at 35 per cent to 50 per cent profit margin), the investment of 40,000 can be recovered after two months assuming with 25 days a month operation. 3,000x .25x 25 days=18750.00 40,000/18750=2.13 months or 2 months and 3 days source:http://www.entrepreneur.com.ph/byob/its_in_the_carts.html Business,marketing,Entrepreneur,Entrepreneurship